IPO Note | HFCs

March 11, 2013

Repco Home Finance (RHFL)

Attractive Priority
Operates in attractive loan segment - Priority sector home loans: RHFL is largely focused on providing home loans in tier-II and tier-III cities (with a sub-`10lakh average loan ticket size), due to which a large part of its book qualifies as priority sector lending (PSL) for banks. In our view, NBFCs operating in PSL segments enjoy competitive advantages, as most banks (especially in the private sector) have a perennial shortage in meeting their PSL targets, creating favorable demand-supply dynamics for those NBFCs that can source higher-yielding PSL loans at reasonable asset quality. REPCOs loan book profile also allows it to procure 44% of its total borrowing via low-cost NHB refinance averaging about 7.5-8% (NHB refinance is available under various schemes, primarily for rural loans upto `15lakh and also for low cost urban housing loans up to `10lakhs). Moreover, the funding that it gets from banks in turn largely qualifies as PSL for the banks (loans by banks to NBFCs, which are on-lent as home loans less than `10lakhs qualify as PSL). This makes it attractive for banks to lend to RHFL at a reasonable cost (about 100bps above base rate), as against alternatives such as parking funds under RIDF at extremely low yields, to meet their PSL targets. Relatively low-cost NHB and bank funding enables it to maintain healthy margins and return ratios (NIMs at 3.8% and RoE at 22.2% in 1HFY2013, calculated on an annualized basis) In terms of borrower profile, around 53% of RHFLs outstanding loan book constituted loans to relatively higher-yielding higher-risk non-salaried segment. To mitigate risks, the company, lends at a low LTV of about 65%, as per the management. In terms of geographical presence, 67% and 98% of its business is concentrated in Tamil Nadu and South India, respectively, largely in tier-II and tier-III cities. Management expects strong growth to continue: Over FY2008-12, the company grew its loan book at a CAGR of 43.8% (albeit on a small base) to `2,802cr, driving PAT CAGR of 43.3%. As of September 30, 2012, its CRAR stood at a comfortable 15.9% (entirely tier-I). Further, IPO proceeds would increase its capital base by nearly 0.9x, providing enough headroom for maintaining strong loan growth for the next few years as well. Funding mix is also expected to remain stable (In FY2014 NHB refinance facility for Rural housing fund increased by 50% to `6,000cr; bank demand for PSL opportunities is also expected to remain strong and future outlook is favorable, in our view, given governments priority sector focus). Outlook & Valuation: RHFL generated 22.2% RoE in 1HFY2013E and would trade at 1.8x FY2013E ABV (at the upper end of its price band, based on post-issue networth). Closest comparable peer - Gruh HF (mainly western India, rural and semi-urban focus, largely PSL qualifying home loans) appears extremely expensive at valuations of 7.3x FY2013E BV, notwithstanding its ~30% earnings growth trajectory and ~35% ROEs (FY2013E). Other NBFCs like Mahindra Finance and Shriram Transport Finance operating in different priority sector segments to a varying degree and generating similar return ratios, are trading at 2.6x and 2.3x FY2013E ABV, respectively (but they have larger, relatively more seasoned loan books and longer proven track record). Overall, keeping in mind RHFLs attractive niche loan segment, strong growth prospects and reasonable valuations, we recommend subscribe to the issue at the upper band.
Please refer to important disclosures at the end of this report

SUBSCRIBE
Issue Open: March 13, 2013 Issue Close: March 15, 2013
Issue Details
Face Value: `10 Present Eq. Paid-up Capital: `46.4cr Offer Size: 1.57cr Shares Post Eq. Paid-up Capital: `62.2cr Issue size (amount):* `259-270cr Price Band: `165-172 Post-issue implied mkt. cap*: `1,026cr1,069cr Promoters holding Pre-Issue: 50.0% Promoters holding Post-Issue: 37.4%
Note:*At the lower and upper price band, respectively

Book Building
QIBs Non-Institutional Retail Up to 50% At least 15% At least 35%

Post Issue Shareholding Pattern

Promoters Group MF/Banks/Indian FIs/FIIs/Public & Others 37.4 63.6

Vaibhav Agrawal
022 39357800 Ext: 6808 vaibhav.agrawal@angelbroking.com

Sourabh Taparia
022 39357800 Ext: 6872 Sourabh.taparia@angelbroking.com

RHFL | IPO Note

Key Financials
Particulars (Rs cr) NII % chg Net Profit % chg RoA (%) RoE (%) P/ABV (x) Lower End P/ABV (x) Upper End FY2009 43 63.6 25 66.6 2.9 17.7 5.5 5.2 FY2010 73 69.4 44 74.9 3.5 25.7 4.5 4.2 FY2011 98 33.8 57 28.7 3.2 26.2 3.6 3.4 FY2012 117 19.3 68 19.4 2.7 24.8 2.9 2.7 1HFY13 63 18.4* 36 10.2* 2.4 22.2 -

Source: Company, Angel Research, Note: *yoy growth

Company background
RHFL, a south based housing finance company, was established in April 2000 as a wholly owned subsidiary of Repco Bank. The company is primarily engaged in the business of individual home loans and loans against property, which as of 1HFY2013 accounts for 85.6% and 14.4% of its loan book respectively. As of December 31, 2012, it had a total of 73 branches and 19 satellite centers located in Tamil Nadu, Karnataka, Andhra Pradesh, Kerala, Maharashtra, Odisha, West Bengal, Gujarat and the Union Territory of Pondicherry. In December 2007, the company raised funds to the tune of `76cr from Carlyle group, a global alternative asset manager and by virtue of which Carlyle group acquired 49.9% stake in the company. Recently, Carlyle group has transferred 26.2% of the total equity shares to Creador 1 LLC, WCP Holdings III and certain other entities; and hence Carlyle currently hold a 23.7% stake in the company. Repco Bank, the promoter of the company, is a Government of India owned cooperative bank, which was established to help and promote the rehabilitation of repatriates from Sri Lanka, Myanmar, Vietnam and other countries. Its operations are largely confined in the four South Indian states and the Union Territory of Puducherry. During FY2012, Repco Bank reported a net profit growth of 30.3% yoy to `73cr, on a total asset base of `4,875cr, which grew by 33.4% yoy. Mr. R. Varadarajan is the Managing Director of the company as well as the promoter and has 35 years of experience in banking industry. He is responsible for the overall strategy and direction of the company. Most of the key management personnel have healthy experience in the housing finance and the banking industry and have been associated with the company for anywhere between 4-9 years.

Details of the issue

The IPO comprises an issue of fresh equity shares of 1.57cr of face value `10 each to the public, with a reservation of 0.02cr equity shares for subscription by eligible employees. The issue constitutes 25.3% of the post-issue paid-up capital. The price band for the issue has been fixed at `165-172/ share, valuing the company at `1,026cr - `1,069cr. REPCO HF intends to utilize the proceeds to augment its capital base, so as to meet future capital adequacy requirements. As of September 30, 2012, its CRAR stood at 15.9%, much above the regulatory minimum of 12%. Post-issue, the shareholding of the promoters in the company will fall to 37.4% from the current holding of 50.0%.
March 11, 2013

RHFL | IPO Note

Investment arguments
Operates in attractive loan segment - Priority sector home loans
RHFL is largely focused on providing home loans in tier-II and tier-III cities (with a sub-`10lakh average loan ticket size), due to which a large part of its book qualifies as priority sector lending (PSL) for banks. In our view, NBFCs operating in PSL segments enjoy competitive advantages, as most banks (especially in the private sector) have a perennial shortage in meeting their PSL targets, creating favorable demand-supply dynamics for those NBFCs that can source higheryielding PSL loans at reasonable asset quality. REPCOs loan book profile also allows it to procure 44% of its total borrowing via low-cost NHB refinance averaging about 7.5-8%. NHB refinance is available under various schemes, primarily for rural loans upto `15lakh and also for low cost urban housing loans up to `10lakhs. As per the management, of its total NHB refinance roughly two-third pertained to rural schemes and balance pertained to urban schemes. Moreover, the funding that it gets from banks in turn largely qualifies as PSL for the banks (loans by banks to NBFCs, which are on-lent as home loans less than `10lakhs qualify as PSL). This makes it attractive for banks to lend to RHFL at a reasonable cost (about 100bps above base rate), as against alternatives such as parking funds under RIDF at extremely low yields, to meet their PSL targets. Relatively low-cost NHB and bank funding enables it to maintain healthy margins and return ratios (NIMs at 3.8% and RoE at 22.2% in 1HFY2013, calculated on an annualized basis).

Exhibit 1: Average loan ticket size for the company

(` lakh) 10 9 8 7 6 5 4 3 2 1 0 FY2009 FY2010 FY2011 FY2012 1HFY13 6.1 7.0 8.9 8.1 9.3

Source: Company, Angel Research

March 11, 2013

RHFL | IPO Note

Exhibit 2: Salient features of some NHB refinance schemes

Scheme Name Rural Housing Fund Special Refinance Scheme for Urban Low Income Housing Liberalized Refinance Scheme Energy Efficient Housing Refinance Scheme
Source: NHB, Angel Research

Loan size upto `15lakh upto `10lakh Any Any

Location Rural Rural Urban Rural/Urban Urban

Tenure (yrs) Ultimate borrower 1 -15 Any

Interest Rate Floating/fixed

Golden Jubilee Rural Housing Refinance Scheme upto `15lakh

3 - 7 Weaker section Fixed Persons having annual household 5 -15 Fixed income below `2lakh 1 -15 Any Floating/fixed 1 -15 Any Fixed

In terms of borrower profile, around 53% of REPCOs outstanding loan book constituted loans to relatively higher-yielding higher-risk non-salaried segment. To mitigate risks, the company, lends at a low LTV of about 65%, as per the management. In terms of geographical presence, 67% and 98% of its business is concentrated in Tamil Nadu and South India, respectively, largely in tier-II and tierIII cities.

Exhibit 3: Borrower profile wise loan book

Salaried 100% 80% 60% 5.8 40% 20% 0% FY2010 FY2011 FY2012 1HFY13 44.1 44.9 46.5 47.3 5.8 4.6 4.5 Professionals/Selfemployed LoantoBusinessmen

Exhibit 4: Region-wise loan book, as of FY2012

Maharashtra 2% AndhraPradesh 16%

50.0

49.3

48.9

48.2

Kerala 2% Karnataka 13% Tamil Nadu 67%

Source: Company, Angel Research

Source: Company, Angel Research

Management expects strong growth to continue

Over FY2008-12, the company grew its loan book at a CAGR of 43.8% (albeit on a small base) to `2,802cr, driving PAT CAGR of 43.3%. As of September 30, 2012, its CRAR stood at a comfortable 15.94% (entirely tier-I). Further, IPO proceeds would increase its capital base to nearly 1.9x, providing enough headroom for maintaining strong loan growth for the next few years as well. RHFLs funding mix, which primarily comprises of loans from bank and NHB, is also expected to remain stable, going ahead, given the governments priority sector focus, which is evident in 50% yoy increase in its allocation of funds to NHB refinance facility for Rural Housing Fund during FY2014 (from `4,000cr to `6,000cr) and strong demand from banks for PSL opportunities, considering a perennial shortage in meeting their PSL targets, in case of most banks (especially in the private sector).

March 11, 2013

RHFL | IPO Note

Exhibit 5: Strong loan book growth (on a low base)

(` cr) 3,000 2,500 2,000

Exhibit 6: RHFLs funding profile

SCBs 100% 7.8 NHB refinance 13.6 Promoter 9.8 11.3

2,802

80% 60% 40% 20% 0% FY2010 FY2011 FY2012 1HFY13 43.0 44.4 56.4 48.3 47.2 44.3

1,500 1,000

0 FY2008 FY2009 FY2010 FY2011 FY2012

Source: Company, Angel Research

655

500

991

1,408

2,074

35.8

38.0

Source: Company, Angel Research

Key risks/concerns
Relatively unseasoned, fast growing loan book, focus on non salaried segment could pose asset quality concerns
RHFL grew its loan book at a CAGR of 43.8% over FY2008-12, much higher than industry levels, owing to a small base. From `655cr in FY2008, its loan book has grown more than 3x to `2,802cr in FY2012, and hence a large part of its loan book appears unseasoned. Further, a sizeable proportion of its loan book constitutes loans to non-salaried borrowers (53% as of 1HFY13), which is generally regarded as a more vulnerable segment from an asset quality point-of-view, given the inherently more uncertain income stream of the borrowers, which could be exacerbated by low ticket size. GNPA ratio for the company has increased consistently over the last three years, from 1.0% in FY2010 to 1.4% in FY2012. Segment-wise, while GNPA ratio in the loans against property segment declined from 1.4% in FY2010 to 1.1% in FY2012, it grew from 1.2% to 1.4% over the same period for its individual home loan portfolio. On an absolute basis, while GNPA levels for the company grew at a CAGR of 59.3% over FY2009-12, doubtful and loss assets as a proportion to total Gross NPAs increased from 27.9% in FY2010 to 47.6% in FY2012. PCR ratio for the company stood at 31% as of FY2012. Even during 1HFY2013, subdued economic environment has resulted in a further increase in the GNPA ratio for the company to 2.1%. Though, HFCs generally face higher delinquencies during the year, which get normalize at the end, however, considering continued weakness in the economy and unseasoned nature of its loan book, in our view, the asset quality of the company is likely to remain a concern.

Funding dependent on banks and NHB refinance

As of 1HFY2013, around 44% of its total funding constituted borrowings from NHB, while the remaining came from banks (44%) and its parent company (12%). NHB has been extending refinance at an average rate of around 7.5-8% to HFCs under various schemes, primarily for rural loans upto `15lakh, while, banks also extend loans to HFCs at a reasonable cost to meet their PSL targets, as on-lending as home loans less than `10lakhs qualify as PSL for banks.

March 11, 2013

RHFL | IPO Note

If some or all of these low cost funding alternatives, cease to be entirely available/are available in a reduced extent to HFCs, being a small housing finance company and considering its funding profile, the cost of funding and business growth would get severely impacted for the company. However, given the strong focus of the Government on priority sector, in our view, such an adverse event is highly unlikely to take place. Even in FY2014, the Government has increased the allocation for NHB refinance facility for Rural housing fund by 50% to `6,000cr and bank demand for PSL opportunities also continues to remain strong.

Regional concentration risk

RHFLs business is geographically confined to four south Indian states (98% of total business, as of FY2012), of which, Tamil Nadu constitutes the largest pie (67% of total business, as of FY2012). The company has expansion plans in place to improve the proportion of its non-south loan-book (2% currently, only from Maharashtra), and has opened new branches in West Bengal, Orissa and Gujarat during the previous year. Hence, its business is likely to remain concentrated in South India and particularly in Tamil Nadu and would remain vulnerable to regional concentration risks, more so, as a large part of its loan book comes from non-salaried segment. As of 1HFY2013, around 53% of its loan book constituted loans to non-salaried segment, of which, loans to businessmen constituted 48% of the total loan book, balance being loans to professionals.

Outlook and valuation

RHFL generated RoEs of 22.2% in 1HFY2013E and would trade at 1.8x FY2013E ABV (at the upper end of its price band, based on post-issue networth). Closest comparable peer - Gruh HF (mainly western India, rural and semi-urban focus, largely PSL qualifying home loans) appears extremely expensive at valuations of 7.3x FY2013E BV, notwithstanding its ~30% earnings growth trajectory and ~35% ROEs (FY2013E). Other NBFCs like Mahindra Finance and Shriram Transport Finance operating in different priority sector segments to a varying degree and generating similar return ratios, are trading at 2.6x and 2.3x FY2013E ABV respectively (but they have larger, relatively more seasoned loan books and longer proven track record). Overall, keeping in mind RHFLs attractive niche loan segment, strong growth prospects and reasonable valuations, we recommend subscribe to the issue at the upper band.

Exhibit 7: Comparative profile of select HFCs

Company CANFIN$ GIC$ DEWAN* GRUH* REPCO# Loan book (` cr) 3,592 3,872 24,340 5,003 3,098 Avg. ticket size(` lakh) NA NA 8.4 4.6 8.9 25.9 15.3 7.2 49.4 44.3 Funding (%) NHB ref. Banks NCD 67.9 78.1 34.0 44.4 0.0 0.0 3.7 0.0 Gross NPANet NPA Others 6.3 6.6 13.0 12.8 11.3 0.90% 0.00% 2.08% 0.41% 0.73% 0.00% 0.53% 0.00% 2.12% 1.59%

67.9 11.8

Source: Company, Angel Research, Note: *as of Dec 31, 2012, however, for GRUH, funding and average ticket size as of FY2012, #as of Sept 30, 2012, $as of March 31, 2012

March 11, 2013

RHFL | IPO Note

Exhibit 8: Comparative DuPont analysis

GIC Parameter Yield Prov.# Risk adj. yields Cost Adj. NII Other Income Operating Income Operating Exp PBT Taxes RoA Leverage RoE
#

CANFIN FY2011 10.1 0.1 10.1 6.9 3.2 0.2 3.4 0.8 2.6 0.7 1.9 7.6 14.3
#

GRUH 1HFY13* 11.8 0.2 11.6 8.6 3.1 0.0 3.1 0.9 2.2 0.5 1.7 8.3 14.4 FY2011 12.3 0.1 12.2 6.8 5.4 0.0 5.4 1.1 4.3 1.2 3.1 10.1 31.4 13.7 0.1 13.6 8.2 5.4 0.0 5.4 1.0 4.3 1.1 3.2 10.7 34.2 13.5 0.5 13.0 8.6 4.4 0.0 4.4 1.0 3.4 1.0 2.4 10.8 25.9 12.0 0.3 11.7 7.1 4.5 0.7 5.2 0.8 4.3 1.2 3.2 8.3 26.2

REPCO 12.4 0.4 12.0 8.2 3.8 0.5 4.3 0.8 3.5 0.8 2.7 9.1 24.8 12.2 0.4 11.8 8.4 3.4 0.4 3.8 0.7 3.2 0.8 2.4 9.3 22.2

FY2011 9.8 1.1 8.7 6.3 2.4 2.7 5.1 0.8 4.2 0.9 3.3 8.1 26.7

FY2012 1HFY13* 10.9 0.5 10.4 7.8 2.6 0.1 2.7 0.8 2.0 0.5 1.5 8.3 12.3 12.1 0.3 11.8 8.3 3.5 0.0 3.5 0.8 2.7 0.7 2.0 8.5 17.4

FY2012 11.2 0.3 10.9 7.8 3.1 0.3 3.4 0.9 2.4 0.7 1.8 7.6 13.3

FY2012 1HFY13* FY2011 FY2012 1HFY13*

Source: Company, Angel Research, Note:*on an annualized basis, for CANFIN and GIC, as the data regarding provisioning expenses in total operating expense was unavailable for 1HFY13, assumed similar run-rate for operating expenses (excl. provisions) for 1HFY13 as was in FY2012

Exhibit 9: Valuation Summary

Trailing* RoA CANFIN GICHF DEWAN GRUH REPCO SHRIRAM TRAN. M&MFIN 1.8 1.9 1.7 3.2 2.5 3.1 3.5 Trailing* RoE Trailing* P/ABV (x) 14.5 14.9 17.5 33.1 25.9 20.8 24.2 0.9 1.2 1.0 8.3 2.6 2.5 3.8 FY13E P/ABV (x) 0.8 1.1 0.9 7.3 1.8 2.3 2.6

Source: Company, Angel Research, Note: *as of 1HFY2013

March 11, 2013

RHFL | IPO Note

Income statement (standalone)

Y/E March (` cr) NII - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. & Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY2009 43 63.6 2 (17.9) 45 56.5 7 1.3 38 74.2 3 209.4 35 68.5 10 28.8 25 66.6 FY2010 73 69.4 1 (66.9) 74 63.1 9 31.9 64 69.0 4 29.8 61 72.0 17 27.7 44 74.9 FY2011 98 33.8 0 (39.7) 98 33.1 15 59.5 83 29.2 5 53.3 78 27.9 21 27.2 57 28.7 FY2012 117 19.3 0 (82.9) 117 18.9 19 29.7 97 16.9 9 74.2 88 12.9 20 23.0 68 19.4 1HFY13* 63 18.4 0 63 18.4 10 21.3 54 17.9 6 7.1 48 19.4 12 25 36 10.2

Note:*growth is on a yoy basis, i.e. 1HFY13 over 1HFY12

Balance sheet (standalone)

Y/E March (` cr) Share Capital Reserve & Surplus Loan Funds - Growth (%) Other Liabilities & Provisions Total Liabilities Investments Advances - Growth (%) Fixed Assets Cash & Bank Other Assets Total Assets FY2009 79 73 849 47.6 30 1,032 1 991 51.3 1 35 4 1,032 FY2010 46 144 1,258 48.1 35 1,483 2 1,409 42.2 2 64 5 1,483 FY2011 46 195 1,810 43.9 46 2,097 2 2,076 47.3 3 8 8 2,097 FY2012 46 257 2,486 37.4 61 2,851 8 2,807 35.2 3 18 15 2,851 1HFY13* 46 292 2,735 28.4 75 3,149 8 3,103 10.5 3 17 18 3,149

Note:*growth is on a yoy basis, i.e. 1HFY13 over 1HFY12

March 11, 2013

RHFL | IPO Note

Ratio analysis (standalone)

Y/E March Profitability ratios (%) NIMs Cost to Income Ratio RoA RoE Asset Quality (%) Gross NPAs Net NPAs Provision Coverage Per Share Data (`) EPS ABVPS (100% cover.) DPS Valuation Ratios PER (x) at upper band PER (x) at lower band P/ABVPS (x) at upper band P/ABVPS (x) at lower band DuPont Analysis NII (-) Prov. Exp. Adj. NII Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE 4.6 0.3 4.3 0.6 4.8 0.8 4.0 1.2 2.9 6.2 17.7 5.2 0.3 4.9 0.6 5.6 0.7 4.8 1.3 3.5 7.3 25.7 4.8 0.3 4.5 0.7 5.2 0.8 4.3 1.2 3.2 8.3 26.2 4.2 0.4 3.8 0.5 4.3 0.8 3.5 0.8 2.7 9.1 24.8 3.8 0.4 3.4 0.4 3.8 0.7 3.2 0.8 2.4 9.3 22.2 31.8 30.5 5.5 5.2 18.2 17.4 4.5 4.2 14.1 13.5 3.6 3.4 11.8 11.3 2.9 2.7 5.4 31.2 0.4 9.5 38.1 1.0 12.2 47.8 1.0 14.5 59.6 1.1 7.7 62.4 0.96 0.69 27.9 1.24 0.96 22.1 1.21 0.95 21.7 1.37 0.95 30.8 2.12 1.58 25.3 4.6 15.7 2.9 17.7 5.2 12.7 3.5 25.7 4.8 15.3 3.2 26.2 4.2 16.7 2.7 24.8 3.8 15.4 2.4 22.2 FY2009 FY2010 FY2011 FY2012 1HFY13

March 11, 2013

RHFL | IPO Note

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavors to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

March 11, 2013

10

RHFL | IPO Note

6th Floor, Ackruti Star, Central Road, MIDC, Andheri (E), Mumbai- 400 093. Tel: (022) 39357800
Research Team Fundamental: Sarabjit Kour Nangra Vaibhav Agrawal Bhavesh Chauhan Viral Shah Sharan Lillaney V Srinivasan Yaresh Kothari Ankita Somani Sourabh Taparia Bhupali Gursale Vinay Rachh Amit Patil Shareen Batatawala Twinkle Gosar Tejashwini Kumari Technicals: Shardul Kulkarni Sameet Chavan Sacchitanand Uttekar Derivatives: Siddarth Bhamre Institutional Sales Team: Mayuresh Joshi Hiten Sampat Meenakshi Chavan Gaurang Tisani Akshay Shah Production Team: Tejas Vahalia Dilip Patel Research Editor Production tejas.vahalia@angelbroking.com dilipm.patel@angelbroking.com VP - Institutional Sales Sr. A.V.P- Institution sales Dealer Dealer Sr. Executive mayuresh.joshi@angelbroking.com hiten.sampat@angelbroking.com meenakshis.chavan@angelbroking.com gaurangp.tisani@angelbroking.com akshayr.shah@angelbroking.com Head - Derivatives siddarth.bhamre@angelbroking.com Sr. Technical Analyst Technical Analyst Technical Analyst shardul.kulkarni@angelbroking.com sameet.chavan@angelbroking.com sacchitanand.uttekar@angelbroking.com VP-Research, Pharmaceutical VP-Research, Banking Sr. Analyst (Metals & Mining) Sr. Analyst (Infrastructure) Analyst (Mid-cap) Analyst (Cement, FMCG) Analyst (Automobile) Analyst (IT, Telecom) Analyst (Banking) Economist Research Associate Research Associate Research Associate Research Associate Research Associate sarabjit@angelbroking.com vaibhav.agrawal@angelbroking.com bhaveshu.chauhan@angelbroking.com viralk.shah@angelbroking.com sharanb.lillaney@angelbroking.com v.srinivasan@angelbroking.com yareshb.kothari@angelbroking.com ankita.somani@angelbroking.com sourabh.taparia@angelbroking.com bhupali.gursale@angelbroking.com vinay.rachh@angelbroking.com amit.patil@angelbroking.com shareen.batatawala@angelbroking.com gosar.twinkle@angelbroking.com tejashwini.kumari@angelbroking.com

Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE: INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946 Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

March 11, 2013

11